Beatrice Bakery emerges from Chapter 11
March 20, 2012
by Eric Schroeder
BEATRICE, NEB. — Beatrice Bakery Co., maker of Grandma’s Fruit Cakes, emerged from Chapter 11 bankruptcy protection on March 5. The company originally filed for Chapter 11 on July 5, 2011, in the U.S. Bankruptcy Court for the District of Nebraska.
At the time of the company’s filing, Greg Leech, president of Beatrice Bakery, said the company’s cash flow was strong and its debt to equity ratios were well within acceptable ranges, but the company was forced into the filing by a shareholder, who along with several other shareholders, had loaned the company money.
When the company was not able to pay the loans as they became due, one shareholder filed suit, seeking to force the company to pay his loan. During the bankruptcy process, Mr. Leech said Beatrice Bakery continued to operate its business without any interruptions to its customers or suppliers.
In addition to Grandma’s Fruit Cakes, which date back to 1917, Beatrice Bakery makes liqueur cakes, artisan cakes, kosher cakes and breakfast bread.